The government has approved the takeover bid by the Cinven, KKR and Providence funds for MasMovil, meaning another requirement for the success of the operation has been met. On 1 June, a consortium formed by these three funds launched a bid for 100% of the Spanish operator’s capital at 22.5 euros/share.
The telecommunications operator, which is in the midst of a takeover bid, is relaunching its commitment to growth with four corporate transactions. These are: the acquisition of Lycamobile, a mobile virtual operator focused on the immigrant market and its subsidiary in Portugal; the purchase of Ahimás, which specialises in rural areas; and the launch of its Basque subsidiary Guuk. The Lycamobile deal, worth €372 M, is the most important one. It was agreed in February and approved by the board on May 28.
MásMóvil remains the exception in a sector marked by low growth rates and high competition. In fact, the company has begun 2020 with two positive pieces of news. On the one hand, the telecoms company is anticipating strong cash generation in 2021, which will allow it to reconsider shareholder remuneration policy. On the other hand, the company has once again been the leader, in January, in terms of client portability in both fixed and mobile phone markets.
Acerinox and MásMóvil will increase their weight in the Spanish stock index, accounting for 100% of its capital vs current 80%. On the contrary, Colonial will see it reduced to 60% (vs current 80% ) while Naturgy goes from 60% to 40%.
Renta 4 | We made a change in the Portfolio letting Telefónica (TEF) go, and MásMóvil (MAS) in, since the second has a much higher revaluation potential supported by its greater growth, double digit in revenue and expanding its operating margins, estimating that it will continue to be the operator with the highest share in the coming years.
The broadband market continues to grow in Spain: 31% penetration in Spain vs. 42% on average in other European countries, analysts at Morgan Stanley point out.
MasMovil has closed a new agreement with Orange which includes both the mobile network (including 5G and extending it to 2028/2033) and Fibre to Home – FTTH – (including an additional 5.2 M UI) and at the same time has updates its estimates (2019/2020) extending them to 2021.
Santander Corporate & Investment | In 1Q19, MásMóvil (MAS) registered 140,000 new net subscribers in fixed broadband (compared to expectations of less than 100,000 for the entire market) and the trend in 2Q19 remains solid, considering fixed ports, suggesting no less of 100,000 net connections in 2Q19 and implies a risk of upward deviation for the scenario that we handle of 350,000 net connections in 2019E.
Renta 4 | On 13 June the Ibex´s Technical Advisory Committee will hold a routine meeting. If we look at the volumes traded over the last 6 months, MasMovil is a clear candidate to enter.
José Benito de Vega | MasMovil has traded in the continuous market since July 2017, although it has done so since April 2012 in the alternative stock market. Since it began to trade in the continuous market it shares have doubled in value, even though during the last year it had seen ups and downs, falling 25% in the last 12 month compared to a fall in the Ibex of 3% in the same period.